Berger Paints To Grow Profit Via Innovation, New Investment

Berger Paints Nigeria Plc said product and distribution innovation and new investment will grow sales and profitability of the company going forward. Managing director of Berger Paints, Mr. Peter Folikwe made this known at the company fact behind the figure held on the Nigerian Stock Exchange (NSE) in Lagos. Folikwe said the company would focus on increasing its earnings and profitability by leveraging on its new automated factory and increase production output. He outlined that the company would seek to increase its market share, optimize return on investment (ROI) and implement risk management culture among others to ensure sustainable growth and returns to investors.

According to him, top-notch and experienced management, high quality products, efficient market and strong distribution network, effective utilization of modern IT Technology and strong brands are some of the factors that enhance Berger Paints’ competitive edge. Folikwe noted that effective franchise growth and deployment of POS machine were among the key drivers that shall boost the company’s profitability. “We shall increase innovativeness and deepen routes to market to ensure that our products are available in most of the geo-political zones. Our outsourced business partners are being provided massive sales and marketing support to cause a desirable change in trade,” Folikwe said. Also, the chairman of the company, Mr. Abi Ayida stated that the company would review its business model to improve its processes and take advantage of investment opportunities in Nigeria irrespective of the challenges in the operating climate. He assured the Exchange of Berger Paints’ willingness to partner with it in some of its activities that fall under Corporate Social Responsibilities (CSR).

Chief executive officer of NSE, Mr. Oscar Onyema commended the management of Berger Paints for adhering to the post listing requirements, one of which requires regular provision of information by every quoted company to enable investors make investment decision. He advised the company to sustain its strategic and operational efforts aimed at ensuring shareholder value. Onyema who was represented by the executive director, Regulation, Ms. Tinu Awe explained that the Exchange remained committed to partnering with quoted companies as stakeholders in the market ecosystem. According to Onyema, the Exchange aggregates all issues affecting quoted companies, including corporate governance and tax reform and play pivotal role to ensure smooth operation of the companies. Berger Paints said it is targeting N3.492 billion as revenue for the full year, 2018, which represents 13 per cent increase over N3.092 billion recorded in 2017. The company also projects a 23 per cent increase in gross profit to N1.568 billion from N1.273 billion in 2017, while the company expects to post N341 million as profit before tax in 2018. The company stated that it remain focused in its medium and long term investments to outperform competition in its market.